Corporate finance report--论文代写范文

51Due论文代写平台report代写范文:“Corporate finance report”，这篇论文主要描述的是对于企业来说保持运营资金的充足，无论是对于企业能够保持日常高速的运转还是开展更多的项目和产品都是非常的重要的，资金更是一个企业生存和壮大的重要命脉，企业能够通过融资的方式来获取更多的资金，但是不同的融资方式有着不同的优缺点，企业如何选择一个适合的融资方式就成为了企业需要思考的问题。

Executive summary: Finance is important to all kinds of organizations. It helps people to set up their business or expanding. Finance is the lifeblood of business. It flows in mostly from scale of goods and services. It flows out for meeting various types of expenditure. The activating element in any business which may be on industrial or commercial undertaking is the finance.

This report introduced the financing into two sections. One mainly described the advantages and disadvantages of different sources of financing and how to select the appropriate sources finance available to a business. We think their have two kind of sources of finance, internal sources like a company’s assets, factoring or invoice discounting, personal savings and profits that have not been reinvested or distributed among shareholders, external sources such as the bank loan, the ownership capital, venture capital and so on. In order to choose the best sources for a business, we should take all of their advantages and disadvantages into consideration, and mainly pay attention on how much the project needs to be invested and how long it will takes. 

The other part turns to analyze the implication of finance as a resource within a business. Firstly assess and compare the costs of different of sources of finance. Then explain the importance of financing planning and finally describe the information needs of different decision makers and the impact of finance on the financial statements. We have given all of them a description in detail.

1. Introduction  引文

Whether you are thinking of starting up your own business or if an existing business is thinking of expanding, it is likely that money will be needed. Businesses require capital to fund their endeavors, which generate revenue. And this report will introduce the sources of finance and how to explore the appropriate sources for a known project. Finally we will explain the implication of finance as a resource within a business through four aspects such as the costs, the importance of financial planning, the different needs of different information makers and the impact of finance on the financial statements.

2. The sources of finance available to a business 企业可利用的融资资源

Finance is the lifeblood of business. It flows in mostly from scale of goods and services. It flows out for meeting various types of expenditure。For many businesses, the issue about where to get funds from for starting up, development and expansion can be crucial for the success of the business. And it is always come from two ways: internal sources and external sources.

2.1 Internal sources 内部融资

Internal sources is finance which comes mainly frown own funds, profits and depreciation. Internal resources could be a company’s assets, factoring or invoice discounting, personal savings and profits that have not been reinvested or distributed among shareholders. Personal savings is mainly applies to sole traders and partnerships. Owners may use some of their own money as capital to invest in the business. Retained profit which is the amount of profit kept by the company rather than paid as dividends, working capitaland sale of assets. If the business had a successful trading year and made a profit after paying all its costs, it could use some of that profit to finance future activities. This can be a very useful source of long term finance, provided the business is generating profit. Sale of assets belongs to the internal sources too. The business can finance new activities or pay-off debts by selling its assets such as property, fixtures & fittings, machinery, vehicles etc. It is often used as a short term source of finance.

2.2 external sources 外部融资

External source is finance that comes from outside the business. It involves the business owing money to outside individuals or institutions, mainly composed of three parts: the bank loan, ownership capital and venture capital.

2.2.1 The bank loan 银行借贷

Banks and credit unions offer loans to large and small businesses. A loan is useful for a business that is starting up or looking to grow. Loans are often used to buy fixed assets such as machinery and vehicles. Borrowings from banks are an important source of finance to companies. Bank lending is still mainly short term, although medium-term lending is quite common these days. Interest is the fee for borrowing the bank's money, which accumulates based on how much of the loan is used and how long it takes the business to pay back the funds. The long loan usually the payment periods is more than 15 years and always used for starting up new business and paid on a monthly installments . The short loan is for a small amount within the period of 5 years plus agreed charge.

2.2.2 Ownership capital 权益资本

Ownership capital is the capital owned by the shareholders of a company. It is an important source of finance for limited companies. A share issue involves a business selling new shares that entitle the shareholders to share in the control of the business. Each share gives the shareholder a vote on the direction of the company. The more shares a person holds, the more control they have over a company. A company can raise substantial funds through an IPO (initial public offering). The various types of shares are: ordinary shares(These are also known as equity shares and give the owner the right to share the company’s profits and vote at the firm’s general meetings) and preference shares.

2.2.3 Venture Capital 风险资本

Firms in the early stages of development can opt for venture capital. Some individuals join together to provide finance for new businesses that are just starting-up. They look for promising businesses and invest in them, hoping that the businesses will grow and that they will make a profit. This is similar to issuing shares. This option gives the financing company some ownership as well as influence over the direction of the enterprise. Venture capitalists make loans to new or expanding businesses especially established businesses that are crossing international boundaries for the first time hoping that the businesses will grow and that they will make a profit.

2.2.4 Leasing and Hire Purchase. 租赁和分期付款付款

Leasing involves a business renting equipment that it may use for several years or months but never own. It will have a contract with a company who may come in to repair and service the product. The deal may also involve the product being replaced with a new modelevery so often. Businesses often lease equipment such as photocopiers. Hire purchase involves paying for equipment in installments. The business will not own the item until all the payments have been made. It usually works out more expensive to buy an item on hire purchase than paying all at once but it does mean that the business doesn't have to spend a large amount of money at once.

2.2.5 Debentures. 债券

This is a form of long term loan that can be taken out by a public limited company for a large sum and it will be paid back over several years. It is usually borrowed from specialist financial institutions

3. select appropriate sources of finance for a business project  对于一个商业项目选择合适的融资方式

As the demand of the enterprise is not the same, the purpose of financing is also very different. We should take all the conditions into consideration to make a better choice about which source is the best.

At the same time, each financing has its advantages and disadvantages, for example, to the public financing, the advantages are : first, the funds raised are permanent, no expiration days and no repayment of principal stress, Second ,it may raise more funds one time, Thirdly, it helps to increase the company’s visibility and bring a good reputation for it. What’s more, it helps enterprise to establish standardized modern enterprise system. But on the other hand, the demanding market conditions, the higher cost of information reporting and the sacrifice of partly property rights limit the financing of enterprises. And to retained profit, the amount of earnings retained within the business has a direct impact on the amount of dividends. Profit reinvested as retained earnings is profit that could have been paid as a dividend.

The major reasons for using retained earnings to finance new investments, rather than to pay higher dividends and then raise new equity for the new investments, are as follows: The management of many companies believes that retained earnings are funds which do not cost anything, although this is not true,

The dividend policy of the company is in practice determined by the directors, The use of retained earnings as opposed to new shares or debentures avoids issue costs, The use of retained earnings avoids the possibility of a change in control resulting from an issue of new shares. Another example is the bank loan, it has harsh conditions many restrictive clauses, procedures are too complicated and time consuming, loan amount is also small relative, so it is not a good choice for risky business.

4.  Assess and compare the costs of different sources of finance 不同融资的资产和成本对比

There is no single best source of finance and not all sources are available to all businesses. It is important to assess the advantages and disadvantages of each in the context of the business' size, needs and intended return on investment and choose the most appropriate option. Every investment is a risk and successful investors balance the degree of risk against potential rewards.

Certainly, the company must take the cost into consideration for its fundamental purpose is to maximize the benefits. Different sources may cost differently. All financing has specific terms and conditions, for example, times for repayment and interest charges. Interest is the fee the bank takes for providing the loan. The rate of interestvaries between each type of loan and according to how much risk the bank feels there is. To the internal resources such as personal savings and retained savings, it cost little but just suit for the small needs of capital.

As for the external sources, its cost is also different for different choices. Interest is the fee for borrowing the bank's money, which accumulates based on how much of the loan is used and how long it takes the business to pay back the funds. To apply for a bank loan, business owners must provide the financial institution with a proposal for why the funding is necessary, as well as evidence that the business will succeed. It takes too much time. The ownership capital has an instability payment. A company must restrict its self-financing through retained profits because shareholders should be paid a reasonable dividend, in line with realistic expectations, even if the directors would rather keep the funds for re-investing .When corporate profits more and the need of reserve is small, shareholders may get more income from the company, otherwise none or little. So it all depends. But this kind of finance resource will weaken the control of the company. As for the venture capital, its target points the high risk and high-tech industry, the venture capitalists sharing risk and benefits with the company. Their services are useful for companies because they will often offer financing in higher-risk scenarios than banks. However, they will often demand a certain percentage of ownership in the company and/or a high interest rate as a result of taking too much profit away from the company. What’s worse, the venture capital always out of the funds as soon as the company grow up successfully, it makes the company have to search for other ways to raise funds preparing for future development.. So choose the right way to raise funds is necessary for company to save cost.

5. the importance of financial planning  财务规划重要性

Finance is important to everyone in the world not for individuals but also for firms. With the rapid development of society, people become to realize this. But the problem is how to use it properly and effectively. The best way is financial planning. It is important to create a financial plan to give yourself the peace of mind that allows you to give your full focus to your business.

To individuals, financial planning is an evolving plan that changes as you grow in your career path and move on in your life stages, it is a plan that needs to be reviewed as the circumstances changes. The importance of a financial plan is to not only look at today but tomorrow and into the distant future as well. Though we don't know what may lie ahead in our financial business path we need to prepare.

Financial planning ensures that you have money available to meet your present needs and put money away for the future .There is big payoff in sitting down and creating a budget, setting goals and determining how you will use your finances. It allows you to put money into savings to use in the future or in case of emergency. By following a budget and setting goals, you can create plans for saving up for the things that you really want.

Financial planning actually makes things a lot easier especially to a big company. Good financial planning is essential to the success of any business. It requires an understanding of the financial statements and the ability to analyze them and interpret the ratios. It is important to plan finances in order to reap long term benefits through the assets in hand. The investments that one makes are structured properly and managed by professionals through financial planning. Every decision regarding our finances can be monitored if a proper plan is devised in advance. It helps in increasing cash flow which increased by undertaking measures such as tax planning, prudent spending and careful budgeting. A strong capital base can be built with the help of efficient financial planning. Moreover, a proper financial plan that considers the income and expenditure of a company helps in choosing the right investment policy. It may also help gain an understanding about the current financial position. A nice 'cushion' in the form of assets is what many of us desire for. But many assets come with liabilities attached. Thus, it becomes important to determine the true value of an asset. The knowledge of settling or canceling the liabilities, come with the understanding of our finances. The overall process helps us build assets that don't become a burden in the future.

As the finance planning is so important to everyone, why should you wait to create a financial plan that could save your business and sanity? If you have already created your financial plan, go over it every few months. See if changes should be made or if your plan is still solid. If you have not set up a financial plan don't put it off any longer. Sit down and ask yourself somewhat if's and try to set yourself up with some guidelines and create a type of financial safety net for business falls. You'll be glad you did should an unnecessary event ever.

6. The different decision makers’ information needs 决策者需要不同的信息

Now we all know that the financial planning is very important, the problem next is how to make a proper financial planning. It determined by the following two aspects: funding demanders and funder suppliers.

For investors, they must fully understand the potential of the target company and its profitability. It is necessary to know the stage of the company and its size. Most of investors are risk aversion , so it is important to concern the potential risk exist in company. Certainly the profits get from investing is a decisive factor. Through a comprehensive understanding of the company's performance, the investors may easy to make s correct choice about which way is the best to invest, is loan, bonds or purchase of shares and participate in management or any others.

Investors may get access to information from multiple channels such as corporate voluntary disclosure, supervisory committee report, the company’s annual report. They always keep an eye on the Government's macroeconomic policy to relative enterprise.

And for fund demanders, they have to control the financing cost and predict future earnings. They must analysis the various project costs and allocation funds properly. Considering the company’s operating principal is minimize costs and maximize benefits, it is necessary to compare the different sources of funding.. They should try their best to collect all the information about the investors.

7. Impact of finance on the financial statements 融资对财务报告影响

7.1 financial statements 财务报告

A financial statement is a formal record of the financial activities of a business, person, or other entity. Financial statements are formal presentations of the flow of money into, through and out of a business. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements: The balance sheet, it simply demonstrates what the contractor has (assets) and what he or she owes against those assets (liabilities). The difference is the net worth of the business. The income statement what is simply a report card of how much activity was performed in the period, how profitable that activity was (gross profit/loss), and what it cost the contractor to run the business (overhead). Statement of retained earning, it explains the changes in a company's retained earnings over the reporting period. The last one is statement of cash flow which reports on a company's cash flow activities, particularly its operating, investing and financing activities.  The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Financial statements should be understandable, relevant, reliable and comparable.

7.2 Impact of finance on the financial statements 融资对财务报告影响

As we know that the finance is a very wide term and it can be said to be the study of the science of managing funds. It includes things related to lending, spending and saving money. Finance is the lifeblood of business. It flows in mostly from scale of goods and services. It flows out for meeting various types of expenditure. The activating element in any business which may be on industrial or commercial undertaking is the finance. Business finance is defined as that business activity which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of business enterprise. It is mainly developed around three major objectives. Firstly, to obtain an adequate supply of capital for the needs of the business, Secondly, to conserve and increase the capital through better management, Thirdly, to make profit from the use of funds which is an overall objectives of a business enterprise. Now we can easily see that it’s a financial statement that means finance is the main reason for whom we are going to make statement.

8. Conclusion 结论

We have realized that resource of financing is different to different organization and individuals. Different source of financing has its advantages and disadvantages. They should take the cost and term into consideration and compared to select appropriate sources of finance for a business project. And in order to make a good choice, we should assess and compare the costs of different sources of finance.

Financing plan is a good way to manage money and assets. It ensures that you have money available to meet your present needs and put money away for the future. It is important to individuals as well as firms. To us all, we should try our best to figure out the information which may meet our needs. What else is that financial statement is much affect by finance. We need to understand and handle their relationship correctly.

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